Plans for Major Steel Mill Projects Piling Up in 2008

Researched by Industrial Info Resources (Sugar Land, Texas)--North America remains a hotbed for steel mill project development in 2008. A November 2007 study showed $11 billion in major capital and maintenance project work at North American steel mills scheduled to begin construction in 2008 or beyond. Today, that number has grown to more than $14 billion. In addition, there is about $8 billion worth of work underway in North America. Most notably is the $3.7 billion grassroot mill that ThyssenKrupp (FRA:TKA) (Dusseldorf, Germany) is building in Alabama; however, there are 33 other major projects under construction. For example, Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) will complete construction on a $250 million specialty bar quality steel manufacturing mill this year in Memphis, Tennessee.

Click on the image at right to view a chart showing the breakdown of top 10 states for planned steel mill project spending by market region.

Capital-spending plans for North America's steel mill sector have increased significantly this year. Global consolidation of the steel industry continues, and cash-rich foreign investors continue to look for strategic acquisitions in North America. The most recent trend involves renewed interest and investment in the integrated steel segment. For years, North American integrated steel mills have downsized and lost market share to the scrap steel minimill sector. There are only 17 operational integrated steel mills in North America, but rising demand, commodity prices and raw material concerns are causing steel makers to look at integrated steelmaking as an option for new capacity projects. Foreign and domestic investors like Nucor and SeverStal (MCX:CHMF) (Moscow, Russia) are investing big dollars to increase U.S. market share. See recent related news articles for details - Nucor Shows Muscle with Bold Louisiana Iron and Steel Study and SeverStal Group Expands U.S. Holdings with Multi-Million Dollar Investments.

Keep up with changes in the North American steel mill industry with the United States and Canada Steel-Making Industry 3rd Edition.

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